Hello - Can anyone direct me where it states within Regulation CC what needs to be in a notice, given or mailed to a customer. Our bank sometimes stamps or types the Bank's name and address on the notice but most of the time it isn't listed. Is it required? Our Head Teller is saying if it is handed to the client why do they need to put the Bank's name and address on it? I as the auditor, don't have a comeback. Thanks to anyone who replies!

226.16(c)(2) Notice at time of case-by-case delay--(i) In general. When a depositary bank extends the time when funds will be available for withdrawal on a case-by-case basis, it must provide the depositor with a written notice. The notice shall include the following information--
(A) A number or code, which need not exceed four digits, that identifies the customer’s account.
(B) The date of the deposit;
(C) The amount of the deposit that is being delayed; and
(D) The day the funds will be available for withdrawal.

For an exception notice - see 226.13(g) - the only difference is the dislosure of the specific exception invoked.

Sorry to be so thick, then the Bank's name/address isn't required to be printed on the notices? Thanks!

And another question, our bank is placing holds on credit card checks and using an exception hold. Shouldn't they be using a case by case hold?

Which exception are you using?

Exception hold is what the bank has been using. Since they are all current customers that deposited a credit card check, shouldn't it be case by case hold? Plus, they aren't filling out the action on the exception hold so I don't know the reason other than it is a credit card check. It sounds like we need Reg CC training yesterday! Thanks!

Your Exception Hold choices are
+ Large Dep > $5,000 = That could be the case
+ Repeatedly OD Account = That could be the case
+ Re-Deposited = would not be for your case
+ Reason to doubt check will pay = multiple prior threads indicating you can't doubt collectability just because of the "Type" of check, ie Convenience Cr. Card Ck.

If it is not one of the first 2 then it has to be a Case by Case

It could be the reason to doubt collectibility if you called and there were not enough funds to cover the check. Otherwise, you are stuck with first two options, case by case or refusing as a deposit and sending for collection.

Thanks to both of you, the key is that nothing is marked other than the other box and then they put in credit card check. We have issues, that is the bottom line. Thanks again.

I discussed this with an examiner during compliance exam, and what has been stated is correct. Never write the reason as a "credit card check" on an exception hold. Our management had been placing exception holds on all "credit card checks" without any further research as to reason to doubt collectibility. We no longer use "credit card checks" as a reason.

Okie Dokie - Are you saying then that you wouldn't use a case by case hold for credit card checks either? Thanks!

Not Okie, but no, that's not what's being said. The admonition not to write "credit card check" as the reason for an exception hold is a good one. The fact that it is a particular type of check simply does not give you reasonable cause to doubt its collectibility.

Case by case hold notices do not require you to give a reason. If the case by case hold was properly mentioned in the initial disclosure you can put on a case by case hold because the customer's tie does not go with his suit, but you do not have to tell him that was your reason.

"Case by case hold notices require you to give a reason. "

I think Ken meant "do not".

Thank you to all for responding, Reg CC is so complicated.

I would like to ask a question. In the reg it states:

(D) The day the funds will be available for withdrawal.

To me that means "On the 5th business day" or whichever it may be, but I have some in our bank who are saying it means you put the Date it will be available.

Which is correct?

You are correct.

C--16--Case-by-Case Hold Notice

Notice of Hold

Account number: (number)
Date of deposit: (date)
We are delaying the availability of $(amount being held)
from this deposit. These funds will be available on the (number) business day after the day of your deposit (subject to our cash withdrawal limitation policy).
[If you did not receive this notice at the time you made the deposit and the check you deposited is paid, we will refund to you any fees for overdrafts or returned checks that result solely from the additional delay that we are imposing. To obtain a refund of such fees, (description of procedure for obtaining refund).]

On ours, we put "5th business day" and then I will put the calendar day that is- So if the hold expires at close of business on the 16th, I will tell the customer it's available for use on the 17th. That way there is less confusion.

That has been our practice here, but some of our staff is not too good at figuring the date, so we have been written up for putting the wrong date down. (There is no actual feild on the form, just when the customer asks what date is that) I say we quit writing the date, but wanted to be sure that "day" does not mean we have to be specific with the Date.

Thanks

As you have clearly demonstrated, adding the date funds will be available can create problems. One recommendation: if a customer asks when "5 business days" will be, give the response orally. Another suggestion, each day, have the head teller (or someone else that regularly gets it "right") create a short list of dates that are 2, 5, 7 and 11 (or whatever your institutions uses) business days ahead, and give that list to the other tellers, making sure the old list gets trashed each morning.

We have a "hold calculator" that is on each of our desktops (and updated every year) that allows us to input the date the hold is being placed and then tells us the date expires and the date funds are available, even accounting for weekends and holidays. That way no one has to manually figure it out, and it cuts down on errors. I find it's actually more helpful (in the interest of customer service) to write it down, because alot of our customers don't understand the difference between banking day, business day, and calender day.

Loralie,
would you mind sharing the hold calculator?

I'm not sure how to upload it to here, but this is waht it says on the bottom, so you might try there -

Program Authored by James Bedsole based on Excel Calendar created by Andy Zavoina
Contact: Andy Zavoina: andyz@bankersonline.com
Rev. 12-12-08 © Andy Zavoina

Edit- I did a little checking, and if you follow this link it will take you to the above mentioned calendar. http://www.bankersonline.com/tools/compliance/regccresources.html